What is Bait Money and its importance in Bank’s Audit ?

Bait money is the money which is being kept in the Bank locker and duly recorded for tracking down the robbers. This is basically a small pile of currency notes which has been duly noted by the designated Bank officials in the branch and is kept in safe custody so that in case of any robbery or theft, the noted money can be used for tracking down the robbers or thief.

The serial number of bait money is shared with the police or any authority after the robbery or theft incident. If the money is found in the possession of someone, or used to purchase goods, this can make it easier to find the suspect of the bank robbery. Hence Bait money must be verified by auditors especially in big branches.

In the branches Bait Money are subject to audits and auditors are subject to verify the Bait Money on regular interval. Concurrent Auditors are always sensitized about the verification of Bait money.